CBD Energy questions carbon tax

Listed renewable energy company
CBD Energy
has questioned the Gillard government’s carbon tax and called for the government to provide certainty around Renewable Energy Certificate pricing.

On Monday, the company revealed plans to develop 3000 megawatts of renewable power generation capacity alongside mammoth Asian energy partners China Datang Renewable Power and Baoding Tianwei Baobian Electric over the next eight years.

The projects, primarily wind powered, will be built under the new joint venture called AusChina Energy Development.

“I am not sure a price on carbon is a way forward for our business," CBD Energy managing director
Gerry McGowan
said in an interview.

“I’m not necessarily a believer that we need a carbon tax. What we want is stability of policy."

The joint venture will make its first final investment decision this week on its 100 megawatt wind farm project at Taralga in NSW.

But the wind power business is currently fraught with delays as Renewable Energy Certificates (RECs) – the key incentive for capacity increase in the sector – fail to stimulate investment.

The RECs are commodities created by renewable energy producers as they generate power.